Import/Export Price Indexes

U.S. Import and Export Price Indexes News Release

Transmission of material in this release is embargoed until USDL-12-0894
8:30 a.m. (EDT) Thursday, May 10, 2012
Technical information: (202) 691-7101 * MXPinfo@bls.gov * www.bls.gov/mxp
Media contact: (202) 691-5902 * PressOffice@bls.gov
U.S. IMPORT AND EXPORT PRICE INDEXES - APRIL 2012
U.S. import prices declined 0.5 percent in April, the U.S. Bureau of Labor Statistics reported today,
following a 1.5 percent increase in March. The April decrease was driven by lower fuel prices which more
than offset a small increase in nonfuel prices. The price index for overall exports rose 0.4 percent in April
after a 0.8 percent increase the previous month.
Imports
All Imports: Prices for U.S. imports fell 0.5 percent in April, the first monthly decrease since a 0.4 percent
decline in October 2011 and the largest one-month drop since the index decreased 0.6 percent in June 2011.
Despite the April decline, import prices rose 0.5 percent over the past year, although that was the smallest
12-month advance since the index last recorded a year-over-year decrease in October 2009.
Fuel Imports: A 2.1 percent drop in fuel prices led the overall decline in import prices in April. The decrease
in fuel prices followed a 4.4 percent increase in March and was the largest decline for the index since a
similar 2.1 percent decrease in August 2011. A 1.8 percent decline in petroleum prices and a 14.1 percent
drop in natural gas prices each contributed to the April decrease in overall fuel prices. Fuel prices also fell
over the past 12 months as a 45.3 percent decline in natural gas prices more than offset higher petroleum
prices that ticked up 0.1 percent from April 2011 to April 2012. The decrease in overall fuel prices was the
first 12-month decline since the index fell 14.2 percent for the year ended in October 2009.
All Imports Excluding Fuel: The price index for nonfuel prices ticked up 0.1 percent in April after rising
0.5 percent the previous month. Higher prices for nonfuel industrial supplies and materials, automotive
vehicles, consumer goods, and foods, feeds, and beverages all contributed to the increase in overall nonfuel
prices. Capital goods prices were unchanged. Nonfuel prices rose 1.3 percent over the past 12 months.
Table A. Percent changes

Exports
All Exports: U.S. export prices increased 0.4 percent in April as agricultural and nonagricultural prices each
contributed to the advance. The April rise in overall export prices followed a 1.5 percent increase in the first
quarter of 2012. Export prices advanced 0.7 percent for the April 2011-12 period, the smallest year-over-
year increase since the index rose 0.4 percent between November 2008 and November 2009. The 12-month
increase in April was led by higher nonagricultural prices which more than offset declining agricultural prices
over the past year.
Agricultural Exports: Agricultural prices rose 2.0 percent in April after rising 2.5 percent in March. The
April advance was led by a 7.4 percent increase in soybean prices. Despite the increases in the past two
months, agricultural prices fell 3.1 percent over the past 12 months. That decline was driven by falling
cotton, corn, and wheat prices between April 2011 and April 2012.
All Exports Excluding Agriculture: The price index for nonagricultural prices advanced 0.2 percent in
April following a 0.5 percent rise the previous month. Rising prices for nonagricultural industrial supplies
and materials, as well as automotive vehicles, more than offset lower consumer goods prices. Overall
nonagricultural prices increased 1.2 percent for the year ended in April.
SELECTED APRIL HIGHLIGHTS
Import Prices
Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices advanced 0.3
percent in April after increasing 1.6 percent in March. In April, a 13.6 percent increase in agricultural
products prices and a 1.5 percent advance in chemicals prices more than offset a 2.3 percent decline in
unfinished metals prices. The price index for nonfuel industrial supplies and materials rose 1.5 percent over
the past year.
Finished Goods: Prices for imported finished goods were up overall in April, led by a 0.4 percent increase in
automotive vehicles prices and a 0.1 percent advance in the price index for consumer goods. Capital goods
prices were unchanged in April as a 0.3 percent increase in capital goods prices excluding computers was
offset by a 0.5 percent drop in computers, peripherals, and semiconductors prices.
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices ticked up 0.1 percent in April following a
1.8 percent increase the previous month. In April, rising prices for vegetables, coffee, and food oils, up 4.7
percent, 1.4 percent, and 1.3 percent, respectively, more than offset a 2.7 percent drop in meat prices and a
4.1 percent decline in the price index for dairy products.
Imports by Locality of Origin: The price index for imports from China fell 0.3 percent in April, the first
monthly decrease since the index fell 0.2 percent in June 2010. Despite the monthly decline, import prices
from China have risen 2.0 percent over the past year. Import prices from Canada, the European Union,
Mexico, and Japan decreased 1.0 percent, 0.1 percent, 0.5 percent, and 0.4 percent, respectively, in April.
Transportation Services: Import air passenger fares rose 0.7 percent in April after falling 1.0 percent in
March. Higher European, Latin American/Caribbean, and Asian fares all contributed to the April increase.
The index for import air passenger fares advanced 10.3 percent for the year ended in April. Import air
freight prices rose 2.3 percent in April and 1.5 percent over the past year.
Export Prices
Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials
prices increased 0.4 percent in April following a 1.2 percent advance in March. The April rise was driven by
a 1.5 percent increase in fuel prices and a 0.6 percent rise in chemicals prices.
Finished Goods: Finished goods prices were mixed in April. Automotive vehicles prices rose 0.5 percent,
led by a 0.5 percent advance in the price index for parts, engines, bodies and chassis. In contrast, consumer
goods prices decreased 0.2 percent in April, while prices for capital goods were unchanged.
Transportation Services: The index for export air passenger fares advanced 1.2 percent in April, driven by
a 9.5 percent rise in European fares. Export air passenger fares rose 6.7 percent over the past year. Prices for
export air freight increased 0.8 percent in April and 5.1 percent over the past 12 months.
Import and Export Price Index data for May 2012 are scheduled for release on Tuesday, June 12,
2012 at 8:30 a.m. (EDT).

Table 1. U.S. import price indexes and percent changes for selected categories of goods: April 2011 to April 2012

Footnotes(1) Relative importance figures are based on 2010 trade values.

NOTES: Data may be revised in each of the three months after original publication.
Dash = Not available

TECHNICAL NOTE
Import and Export Merchandise and Services Price Indexes -- All indexes use a modified Laspeyres
formula and are not seasonally adjusted. Price indexes are reweighted annually, with a two-year lag in
the weights. Published series use a base year of 2000=100 where possible. More detailed index series
and additional information may be obtained at http://www.bls.gov/mxp, or by calling (202) 691-7101.
Merchandise Goods Classification Systems -- The merchandise price indexes are published using
three classification systems. Items are classified by end use according to the Bureau of Economic
Analysis Classification System, by industry according to the North American Industry Classification
System (NAICS), and by product category according to the Harmonized System (HS). While
classification by end use and product category are self-explanatory, some notes are in order for
classifying items by industry. In the NAICS imports and exports tables, items are classified by output
industry, not input industry. As an example, NAICS import index 326 (plastics and rubber products
manufacturing) include outputs such as manufactured plastic rather than inputs such as petroleum. The
NAICS classification structure also matches the classification system used by the PPI (Producer Price
Index) to produce the NAICS primary products indexes.
Import Price Indexes -- Products have been classified by the Harmonized Tariff Schedule of the United
States Annotated (TSUSA). Import prices are based on U.S. dollar prices paid by the U.S. importer.
The prices are generally either "free on board" (f.o.b.) foreign port or "cost, insurance, and freight"
(c.i.f.) U.S. port transaction prices, depending on the practices of the individual industry. The index for
crude petroleum is calculated from data collected by the U.S. Department of Energy.
Export Price Indexes -- Products have been classified by the Harmonized Schedule B classification
system of the U.S. Bureau of the Census. The prices used are generally either "free alongside ship"
(f.a.s.) factory or "free on board" (f.o.b.) transaction prices, depending on the practices of the individual
industry. Prices used in the grain index, excluding rice, are obtained from the U.S. Department of
Agriculture.
Services Price Indexes -- Starting in September 2008 the Import Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by foreign carriers from U.S. residents and are
calculated from data obtained from an airline consulting service. These data include tickets sold by
travel agencies and travel websites. Tickets sold directly by the airlines are excluded, as are frequent
flyer tickets generally. Starting in January 2008 the Export Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by U.S. carriers from foreign residents and are
calculated from data collected directly from airlines. These data include frequent flyer tickets and those
sold by consolidators. Taxes and fees are included in the Import Air Passenger Fares Index and excluded
from the Export Air Passenger Fares Index. The Air Freight Indexes are calculated from data collected
directly from airlines. These data exclude mail and passenger baggage. The scope of the service being
priced is the movement of freight from airport to airport only, and does not include any ground
transportation or port service. The Air Freight Indexes are presented using two definitions: Balance of
Payments (which represent transactions between U.S. and foreign residents) and International (which
represent transactions inbound to and outbound from the U.S.). Fact sheets specifying detailed
information for each services industry are available at http://www.bls.gov/mxp under "MXP
Publications."
Import Indexes by Locality of Origin -- Prices used in these indexes are a subset of the data collected
for the Import Price Indexes. Beginning with January 2002, the indexes are defined by locality of origin
using a nomenclature based upon the North American Industry Classification System (NAICS).
Nonmanufactured goods are defined as NAICS 11 and 21 and manufactured goods are defined as
NAICS 31-33.
Revision Policy -- To reflect the availability of late reports and corrections by respondents, monthly data
may be revised in each of the three months after original publication. After three months, no further data
revisions take place. So, for example, data released in the January release will be subject to revision in
the releases for February, March, and April.
Uses of the Data -- The primary use of the indexes is to deflate trade statistics, notably the foreign trade
sector of the National Income and Product Accounts constructed by the Department of Commerce.
Other published indexes are useful for general market analysis. For trade in international services,
Balance of Payments indexes are used for deflating National Income and Product Accounts, while
International indexes are more appropriate for market analysis. Merchandise and services indexes also
can be used to study U.S. competitiveness and to compute price elasticities, and the merchandise import
indexes by country or region of origin are useful in terms of trade analysis.
E-Mail Subscription -- The U.S. Import and Export Price Indexes news release is available through an
e-mail subscription service at (http://www.bls.gov/bls/list.htm).
Additional Information -- More detailed data are available on the Import/Export Price Indexes home
page at (http://www.bls.gov/mxp). Flat Files and the FTP server are available for users requiring access
to either a large volume of time series data or other related documentation. The FTP site can be accessed
at ftp://ftp.bls.gov. For technical assistance in using the BLS Internet site, send e-mail to
(labstat.helpdesk@bls.gov). For Import/Export Price Index data requests, send e-mail to
(mxpinfo@bls.gov).
Information from this release will be made available to sensory impaired individuals upon request.
Voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.